Africa Seeks to Convert Resources to Production

Goolam Ballim of Standard Bank Group asserts that Africa is experiencing a rupture in the global order, presenting an opportunity to become central to the next economic map. He argues the continent must convert its resources and demographics into productive capacity, shifting from efficiency to resilience in supply chains. Commercial trust is now a key concern for companies and governments worldwide, driving a move toward “friend-shoring” and “ally-shoring.”

Standard Bank anticipates Africa will grow 4 to 7% over the next decade, with East Africa leading the way. While capital from the Middle East exceeded Chinese investment in 2022 and 2023, Africa still struggles to capture value from its resources. Mpho Molopyane of Alexforbes notes Africa’s working-age population could comprise 25% of the global workforce by 2050, with a potential middle-class increase of roughly 42% by 2030.

However, manufacturing value added in sub-Saharan Africa has declined, and the continent faces an infrastructure funding gap of $68 to $100 billion annually. Addressing these challenges requires focused industrial policy and increased private investment, as well as restoring trust in institutions and governance. The work to build reliable production capacity continues.